FameEX Hot Topics | France’s State Bank Allocates $27M to Support Crypto Projects with Strong Local Roots

France’s state-owned investment bank, Bpifrance, has unveiled a €25 million (approximately $27 million) plan to invest in cryptocurrencies, aiming to bolster French blockchain and crypto initiatives. Announced on March 27, the bank intends to support early-stage projects with strong ties to France, receiving project tokens in return. Its investment focus will include decentralized finance (DeFi), staking, tokenization, and artificial intelligence, all critical sectors within the evolving digital economy.

This move, backed by the French Ministry of Economy and Finance, is part of a broader national strategy to elevate France’s competitiveness in the global blockchain landscape. While blockchain innovation continues to expand worldwide, Bpifrance acknowledged that French participation has lagged. By injecting capital into promising ventures, the government hopes to accelerate domestic innovation and strengthen France’s role in shaping future blockchain infrastructure.

Clara Chappaz, Minister for Digital and AI, underscored the necessity of both public and private sector investment to maintain France’s standing in the international tech scene. Arnaud Caudoux, Deputy CEO of Bpifrance, reinforced this view, noting the urgency of the investment, particularly in light of the U.S.'s rapid advancement in crypto strategy. According to Caudoux, the moment to act is now, and blockchain companies are expected to play an increasingly significant role in the economy.

Bpifrance has long been active in the blockchain space, having invested over €150 million (around $162 million) into the sector over the past decade. A notable early success was its funding of Ledger, the hardware crypto wallet firm, back in 2014. More recently, the bank has experimented with token-based financing, such as its involvement with DeFi lending platform Morpho. Morpho now ranks as the 12th-largest DeFi protocol, with a total value locked (TVL) of $3.24 billion, according to DefiLlama.

In the crypto world, token-based financing is common, where investors receive project tokens under lockup conditions. These lockups prevent immediate liquidation, though initial token distributions to the public can cause price fluctuations if recipients quickly sell. Nonetheless, Bpifrance’s involvement marks a significant step in institutionalizing blockchain investment in France.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.